Reporting Indirect Labor through PMC

Article metadata. Revised by Curtis Mack This article was updated• about a month agoabout

a month ago This article has 2 views.• 2 Views This article has average rating: 0 out of 5

stars• ( )( ) ( ) ( ) ( )

Article Information



Description :


Reporting Indirect Labor through PMC

Clarifying Fact





All Releases


Labor is charged to specific GL accounts via Dept # and Facility in the Payroll LABDIS file.

When you report labor time to a mfg order, it will be passed to PR with the facility id for the

operation reported.

To report indirect labor:

1. Define dummy facility records for each indirect labor type that you want to report. If you

leave DEPARTMENT blank, it defaults to the home department for the employee reporting

the labor, which allows you to define different LABDIS accounts for each department/

indirect type combination. If you fill in DEPARTMENT in the facility record, you will need a

different facility record for each GL indirect account.

2. Open a dummy mfg order for indirect labor. Define a separate operation for each indirect

labor type, with reference to the appropriate facility.

3. Clock on and off indirect labor just as you do for direct labor, except that you use RUN

TYPE = "I". With run type "I", the labor time is sent to PR (with dept & facility), but the

dummy mfg order is not updated. For more information about Run Type, see Solution ID:

16sql10286 (link).

NOTE: Some companies want to accumulate indirect labor time/cost on the dummy order, to

facilitate analysis of total indirect labor hours/cost period-to-date and year-to-date. This can

be done by using RUN TYPE = "R". If you choose this approach, and you have selected

general ledger distribution for PCC, with interface activated for LRSA and LOHD transaction

types, LRSA and LOHD transactions will be sent to the interface file PCCTXN for all

transactions with run type = R, including your indirect transactions.

This may cause the indirect transactions to be double-posted: as indirect labor via Payroll, and

as direct labor via the PCC/GL interface, when you run the PMC Prepare function. You may

want to define separate PCC General Ledger interface account assignment rules for LRSA

and LOHD for your indirect labor transactions, selecting on order number or order accounting

code in the mfg order master record. If the rules define the same account for both charge and

offset, the net affect on the ledger should be zero.

Important Note:  Indirect labor reported through PMC (run type code = I) does not write a record to mfg

order transaction file MOTRAN.


You cannot enter indirect labor in PCC shop activity update.